Manthan Makes a Difference

Despite incessant rain in Mumbai, Manthan conclave saw an overwhelming attendance of industry folks

Although the second edition of Manthan at Sahara Star last month got off an hour behind schedule due to the rain, the audience kept their date with the event. Manoj Jha, Convener, Manthan, confessed, “The fact that people have turned up despite the bad weather shows the spirit of this industry.”

Early on, Anantha Padmanabhan, Chairman, GJC, narrated the secret of his success as an entrepreneur. “We started with a 100 square feet space with Rs.10,000 and Rs 1 lakh in bank loan, my father taught me to put clients at the pinnacle.”

“The last 18 months have been a struggle but I still go around with a smile. I think the key is to be positive.” In its second year, the event hosted speakers from more than 27 industries.

RESOLVING FUNDING CRISIS
For discussion on the most talked about issue of liquidity crunch, the conclave put together a panel of Kewal Handa, Chairman, Union Bank of India, Biju Patnaik, Senior VP, IndusInd, and Himanshu Shekar, Director, Manoharlal Sarraf & Sons.
On how to develop trust with the banks, Handa said, “Your association now really has to act up. You need to work with the government and weed out all the black sheep. This industry also should work on its transparency.” Dispelling the perception that banks are averse to financing the gems and jewellary sector, Patnaik said, “Banks see two things - transparency and profitability. In pure gold retail, profitability is lower and volume is higher.”
Speaking from the jeweller’s point of view, Himanshu said, “Our industry is mostly self-funded. We have no startups in our industry. So we need to put ourselves in the banker’s shoes. They have to lend us money purely based on face value.”

SYNTHETIC DIAMONDS AND THEIR IMPACT
Moderated by Nirupa Bhatt, MD, GIA (India & Middle East), a panel of Jignesh Mehta, MD, Divine Solitaires, and Amish Shah, Founder, ALTR, a lab-grown diamond company discussed the hottest topic right now—the eternal war between the lab-grown diamond and the natural diamond.
Mehta said, “The consumer essentially buys the idea behind a diamond… it’s the emotional and asset value that makes diamonds very desirable.” He ended his submission with a piece of advice to the industry: adapt.

Amish Shah whose family has been dealing with natural diamonds for decades was more forthcoming. “Our industry is not used to disruption. We need to understand that the decision lies with the consumers - earth mined or created, it is really their choice.”

Is Luxury about Exclusivity?
Unraveling the nuances of luxury and its ever-evolving perception, a panel of Sachin Jain, MD, Forevermark, Ramesh Nair, MD & CEO JLL, Sarosh Mody, Founder, Luxury Watch Works and Hardik Parekh, Partner, Parekh Brothers Jewellers offered invaluable insights.

Jain said, “Earlier, luxury brands were very touch-me-not and had a guarded approach. Now luxury brands are becoming more inclusive and are more open.”

Elucidating through an example from the real estate sector, Nair said, “A lot of millennials are looking at buying a home as a sheer necessity. They don’t want a big puja room or a kitchen…. Luxury has not been a very light word in the real estate industry over the last few years.” On what true luxury means, Mody said, “Exclusivity for me comes from the fact that a few pieces are made and I have an exclusive right to owning one of those pieces.”

Talking about jewellery, Parekh said, “Luxury is exclusivity, the touch and feel of the product. We have to have products, which are exclusive and we need to set the right prices for the same.”

Technology is the Future- Are you Ready?
There is a dire need for the jewellery industry to make the shift and embrace digital technology and e-commerce. “Unlike offline purchases, online jewellery can be viewed over a period of time like 2-3 weeks before making a purchase which is not possible offline,” said Gaurav Kushwala, Founder, Blue Stone.
“There is direct relation between weddings and jewellery, one complements the other…. We believe that technology can be used effectively to give consumers better service,” said Murugavel Janakiraman, CEO, Bharat Matrimony.
“Even in the jewellery industry, there is a large amount of data available which needs to be collated and analysed so that jewellers can better serve their consumers,” said Ravi Varanasi, Chief Business Officer, NSE.
“Retail is the only sector that uses technology to the full extent. It gives insight into the needs and wants of the consumers,” said Ashok Minawala, Owner, Danabhai Jewellers

Experts Speak
The economy is currently facing challenges. Given our role in the global economy, we will be impacted by what is happening globally as well. Having said that, there is a lot going for us in terms of potential growth driven by domestic factors. We have enough going for us in terms of boosting GDP. Consumption has slowed and government spending has also gone up. This is not a good sign.
Vikram Limaye, MD & CEO, NSE

Right now the government mood is not of facilitating our industry but regulating our industry. Our industry is mostly self-funded. We have no startups in our industry - we are traditional jewellers who have been into manufacturing and later retailing. So, we need to put ourselves in the banker’s shoes. They have to lend us money purely based on face value.
Himanshu Shekhar, Director, Manoharlal Saraf & Sons

We have been into natural diamonds for so many decades. But what we realised is that our industry is not used to disruption. We need to understand that the decision lies with the consumers - earth mined or created, it is really their choice.
Amish Shah, President, ALTR

Compliance is a state of mind and it means different things to different people. Your conscience should be your compliance. We should have a long term view and avoid short sighted perspectives .
Saurabh Gadgil, MD, PNG Jewellers

This industry has brought a lot of pride to us. Banks recognise the fact that there is a lot of opportunity in this industry. We are not averse to funding this industry. At one point of time, pharma and cigarette industries were most hated. They worked with the government and they developed a strong ethical stand. Your association now really has to act up. You need to work with the government and weed out all the black sheep. This industry also should work on its transparency.
Kewal Handa, Chairman, Union Bank of India

The Indian consumer is quite uninformed about where premium begins and luxury ends. People always make a beeline towards the more commercially successful brands. But for me as a person, I would like to wear a more artisanal piece that is not worn by every Tom, Dick and Harry. Exclusivity for me comes from the fact that few pieces are made and I have an exclusive right to owning one of those pieces.
Sarosh Mody, Founder, Luxury Watch Works

When you think big and plan big it requires funds. So we decided to not restrict ownership to limited people. We allowed everyone who has funds to invest in our business and actively participate in the organization. We also gave them the liberty to audit all accounts at any point in time to increase transparency within the organization.
Asher O, MD, Malabar Gold and Diamonds

In the manufacturing sector, we are still not very technologically savvy. In the wholesale sector, technology is mostly nonexistent as no wholesaler uses technology to further their businesses. Retail is the only sector that uses technology to a full extent. It gives insight into the needs and wants of the consumers.
Ashok Minawala, Owner, Danabhai Jewellers

The consumer essentially buys the idea behind a diamond. We are not selling commodity or a piece of carbon. We are selling the whole idea of diamond, it’s story, which is a billion years old. Diamonds don’t have any functional use. It’s the emotional and asset value that makes diamonds very desirable. We are all concerned about our business and we want answers. The only thing we can do is adapt.
Jignesh Mehta, Founder & Managing Director, Divine Solitaires